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FOLLOW UP ON FALSE ALARM LIABILITY FROM JUNE 9 AND 10, 2015
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Ken
    False alarm usually is not the installer fault. If indirect event can make you liable, then we all can get sued because we all use electricity that causes pollution when being generated by electric company and we drive vehicles that burn fuel which causes pollution or charge electric vehicles using electricity. We cook using gas that has to be extracted from ground polluting underground water body. Someone who has cancer or COPD can sue the world.
Dusan
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RESPONSE
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    Plenty of false alarms are the fault of the installer or central station, especially since most alarms are supposed to be verified before dispatch.  Also, plenty of alarms are defective, either from installation or over time.  What should a central station do with a subscriber who constantly sends in signals because of a faulty alarm?  I had a lose connection that caused a false alarm every few month.  I finally got around to having it fixed.  Some subscribers don't want to fix their alarm; not all subscribers include repair service in their RMR selection.  The contract permits suspension of monitoring when the alarm is causing excessive false alarms.
    So the issue is liability for false alarms when there would be no liability for an actual alarm.  I suspect that the cases that found liability have more to do with how they were handled then sound legal principles.  But my opinion on the matter may be biased.
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SUB WONT SIGN GUARANTEE
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Ken
    I get a lot of customers that sign your contract without the guarantee section.  I always push back asking the for the guarantee to be signed. If they refuse what can happen?
JR
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RESPONSE
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    The guarantee is not crucial for contract enforcement.  It may be critical for judgment recovery and even helpful resolving cases before they go to judgment because individuals may not want lawsuits commenced against them personally.  However, you should not expect your subscribers to routinely agree to a guarantee.  They likely created a corporate entity for the very purpose of avoiding personal liability on corporate debts.  If you are extending credit you may not be willing to accept just the corporate entity.  In that case explain to the subscriber why the guarantee is necessary.  You also have the UCC provision in the contract and you can file a UCC-1 as soon as the contract is signed, giving you a security interest in certain subscriber property.
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ALARM.COM RIDER
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Ken
    We currently use your contracts.  We have just become an alarm.com dealer and we are wondering if the new contracts cover both using these type services and self monitoring on the same form? Would this be yet another form or would it just be a replacement of the current one we use? 
GP
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RESPONSE
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    The Standard Form All in One Agreement [both for residential and commercial] cover all alarm.com services.  However, when you signed up with alarm.com you agreed that your subscriber would sign off on alarm.com's terms and conditions.  Because those terms and conditions are inconsistent with the protective provisions in your Alarm Contract you should be using a Rider with your Agreement, which you get at https://www.kirschenbaumesq.com/page/alarm-contract.  Look for the alarm.com Rider.
     I am going to be reviewing the dealer terms for Napco's I-Bridge interactive services and Napco's StarLink radio services.  For more information on these services contact Napco's Senior VP of Sales and Marketing Jorge Hevia at JHEVIA@napcosecurity.com.  Watch for possible rider requirements for those services.
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